TEMPO.CO, Jakarta - Bank Indonesia (BI) has spoken out about the weakening of the rupiah exchange rate during the Eid al-Adha holiday. On Thursday, May 28, 2026, the rupiah closed at a weaker level of Rp17,845 per US Dollar. Then, at the close of trading today, Friday, May 29, 2026, the rupiah weakened again to Rp17,880 per US Dollar.
The Head of BI's Communication Department, Ramdan Denny Prakoso, stated that the rupiah continues to be affected by ongoing global uncertainty due to the war in the Middle East. "In addition, there is an increase in seasonal demand for foreign exchange, including for the payment of foreign debt (ULN) and dividend repatriation, amidst limited inflows of US dollars," he said in a written statement on Friday, May 29, 2026.
Denny stated that Bank Indonesia is committed to maintaining a continuous presence in the market to stabilize the rupiah exchange rate on a global scale. He said this commitment is achieved by optimizing foreign exchange market interventions through Non-Deliverable Forward (NDF) transactions in the foreign market, spot transactions, and Domestic Non-Deliverable Forward (DNDF) in the domestic market, as well as measured purchases of State Securities (SBN) in the secondary market.
Additionally, Denny stated that Bank Indonesia is strengthening the effectiveness of its monetary policy mix by reinforcing the market-oriented interest rate structure. This will maintain the attractiveness of domestic financial assets and support the inflow of foreign capital. BI has also set the threshold for foreign exchange purchases without underlying transactions of US$25,000 per person per month, starting in June 2026.
"Bank Indonesia will continue to monitor developments in the global and domestic financial markets and consistently take measured steps to maintain the stability of the rupiah exchange rate and support the external resilience of the Indonesian economy," Denny said.
The Director of PT Traze Andalan Futures, Ibrahim Assuaibi, said that from an internal perspective, the development of the exchange rate is influenced by the direction of the Fed's interest rate policy. This has resulted in the outflow of foreign capital from emerging markets, including Indonesia.
As a result, investors tend to shift assets to low-risk instruments. "The recent weakening of the rupiah occurred simultaneously with pressures in the stock and bond markets, including due to MSCI's (Morgan Stanley Capital International) sentiments, concerns about fiscal deficits, and the increase in SBN yields," he said in a written statement on Friday, May 29, 2026.
Read: Expert Cites Free Meal Governance as Rupiah Breaches 17,870 per US Dollar
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